Was the SEC’s Suit Against Goldman More Politics Than Law?

We’d imagine that David Kotz is yet again not the most popular guy strolling the halls of the Securities & Exchange Commission on Thursday.

On Wednesday, Kotz (pictured), the internal watchdog for the SEC, basically hinted that there may have been more politics than law factoring into the commission’s decision to sue Goldman Sachs back in the spring. Katz called the timing of the suit “suspicious,” suggesting that agency officials tried to distract attention away from a report criticizing the SEC for failing to detect an alleged Ponzi scheme. Click here for the WSJ report.

The same day the SEC sued Goldman over the alleged sale of a package of mortgage securities, the SEC released a scathing report by Kotz that concluded the agency had repeatedly missed chances to detect an alleged $7 billion fraud run by Allen Stanford.

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